--- cryptdisks.functions.8_04.orig	2008-05-26 22:47:29.000000000 +0300
+++ /lib/cryptsetup/cryptdisks.functions	2008-05-26 22:59:20.000000000 +0300
@@ -276,6 +276,15 @@
 				sleep 2
 			fi
 			cryptsetup $PARAMS luksOpen $src $dst <&1
+			# If cryptsetup failed, get into the "if" block:
+			if [ $? != 0 ]; then
+				# remove "stale" loopback device:
+				losetup -d $src
+				# We want that $? will represent a failure (because cryptsetup
+				# failed, but losetup most likely succeeded). Running /bin/false
+				# will set $? to 1
+				/bin/false
+			fi
 		fi
 	fi